**Major Improvements Coming to the National Flood Insurance Program**

AFFORDABLE HOUSING AND TAXES

HB 90/SB 687 – State and Local Housing Programs – Affirmatively Furthering Fair
Housing
STATUS: PASSED – Effective October 1, 2021 with reports due no later than December 1, 2023
Directs DHCD and local governments to report every 5 years on their efforts to promote fair housing choice and racial and economic integration, as required by the United States Housing and Urban Development (HUD) Agency under the Affirmatively Furthering Fair Housing Rule (AFFH). Directs DHCD to assess their programs under the AFFH. Directs local government to include a local assessment of fair housing efforts in the housing element of their comprehensive plans starting on January 1, 2023.

REAL ESTATE BROKERAGE AND CONTRACTS

HB 19 – Residential Real Estate Transactions – Escrow Agents and Trust Money
STATUS: PASSED – Effective October 1, 2021
Clarifies the definition of trust money under the law to ensure that only the earnest money held by escrow agent for the down payment is subject to the required disclosure and not other possible escrows (e.g. holding money to repair a window). The law further clarifies that the disclosure applies to residential property (including unimproved property zoned residential) and not commercial property.

HB 384/SB 474/ – Real Property – Sale of Mobile Home Parks – Notice Requirements
STATUS: PASSED – Effective October 1, 2021
A mobile home park owner must notify the park residents of an impending sale of the entire mobile home park at least 30 days before the sale.

HB 399 – Real Property – Required Notice for Contracts of Sale- Zones of Dewatering
Influence
STATUS: PASSED – Effective October 1, 2021
Requires a notice to purchasers in Maryland real estate contracts that the property they are considering is located is a zone of dewatering influence. State zones of dewatering influence cover Baltimore, Carroll, Frederick, and Washington Counties. Zones of dewatering influence are susceptible to the formation of sinkholes and an owner of property in these areas is eligible for certain remedies under law. Additionally, a buyer may add additional insurance on the property to protect against potential damage. If the information is not provided in the contract, the buyer will have a 5- day period to rescind the contract and have the deposit money returned. Does not exempt commercial real estate contracts.

HB 1213 – Financial Institutions – Determination of Creditworthiness – Evaluation
Rules and Alternative Methods
STATUS: PASSED – Effective October 1, 2021
Directs lenders when considering whether to accept an application for a primary residential mortgage loan to include consideration of verifiable indications of creditworthiness, such as: history of rent or mortgage payments; history of utility payments; school attendance; work attendance; and other verifiable indications requested by the applicant. The bill would subject all loans to the federal requirements prohibiting discrimination in lending as well.

COMMON OWNERSHIP COMMUNITIES

HB 110/SB 144 – Electric Vehicle Recharging Equipment for Multifamily Units Act
STATUS: PASSED – Effective October 1, 2021
A Homeowner’s Association or Condominium bylaw that unreasonably prohibits the installation or use of vehicle recharging equipment in a parking space designated for an owner is void and unenforceable. The unit owner bears the cost of installing and maintaining the equipment as well as the cost of the power.

HB 248 – Condominiums and Homeowners Associations – Rights and Restrictions –
Composting
STATUS: PASSED – Effective October 1, 2021
Clarifies that a recorded covenant or restriction (typical in a homeowner’s association or condominium regime) may not unreasonably restrict a dwelling unit owner from contracting with a private entity to collect organic waste materials for composting.

HB 593/SB 535 – Condominiums and Homeowners Associations – Meeting
Requirements
STATUS: PASSED – Effective October 1, 2021
Sets forth a specific process when a Board of Directors meeting is called by an HOA or Condominium and a quorum is not present. The bill permits another meeting to be called within 15 days of that meeting as long as proper notice is provided.

LAND-USE, PROPERTY RIGHTS, AND THE ENVIRONMENT

HB 322 – Real Property – Restrictions on Use – Low-impact Landscaping
STATUS: PASSED – Effective October 1, 2021
Prohibits the unreasonable restriction of low-impact landscaping such as rain gardens, habitat for wildlife and bees. Even a deed restriction, covenant, or other restriction (whether in a Common Ownership Community or not) may not prohibit such landscaping. The community may still set reasonable design and aesthetic guidelines, and an owner must maintain the property.

HB 407/SB 22 – On-Site Sewage Disposal Systems – Inspection – Licensing
STATUS: PASSED – Effective October 1, 2021 to establish the license
Requires a state license for a Wastewater Property Transfer Inspection. The license is required for inspections after July 1, 2022. The Maryland Department of the Environment will develop the program requirements and cost for the license.

PROPERTY MANAGEMENT

HB 18/SB 154 – Landlord and Tenant – Residential Tenants – Right to Counsel
STATUS: PASSED – Effective October 1, 2021
Provides access to counsel for tenants who earn not more than 50% of the median income. Tenants may seek counsel in three situations: eviction for nonpayment of rent; eviction for holding over; and eviction for breach of lease. The bill also requires a 10-day notice to be provided to a tenant before a landlord may file an eviction in court (prior law required 5 days to pass before a landlord could file). The notice will be developed by the Courts and may be delivered by mail, posting, or electronically (if the tenant agrees to electronic communication).

HB 104/SB 401 – Landlord-Tenant – Nonrenewal of Lease – Notice Requirements
STATUS: PASSED – Effective October 1, 2021
Extends from 30 days to 60 days the notice that must be given to a tenant when a landlord chooses not to renew a residential lease if the lease was for less than a year. The bill does not change the notice of 90 days for leases of a year or more and exempts small landlords (less than 5 units) from the extended 60-day period if the landlord is being foreclosed upon (the foreclosure exemption does not apply in Montgomery or Baltimore City where the local law already provided for a 60-day notice).

HB 861/SB 691 – Real Property – Landlord and Tenant – Reusable Tenant Screening
Reports
STATUS: PASSED – Effective October 1, 2021
Provides that tenants may use “reusable” tenant screening reports if accepted by a landlord. If a landlord chooses to accept a “reusable” tenant screening report, the landlord may not charge a rental application fee. If a landlord chooses NOT to accept “reusable” tenant screening reports, the landlord must notify tenants that such reports are not accepted.